90.75 -0.58 (-0.64%)
After hours: 7:24PM EDT
|Bid||90.62 x 900|
|Ask||91.30 x 2900|
|Day's Range||89.14 - 91.85|
|52 Week Range||73.54 - 105.08|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-14.46%|
|Beta (5Y Monthly)||0.70|
|Expense Ratio (net)||0.13%|
Looking for any sign of normalcy during these tumultuous times? Any sign at all?Source: Shutterstock Well, you may be glad to know that during this moment of incredible uncertainty on Wall Street, the stock market is actually following some fairly familiar patterns.We all know that the U.S. economy fluctuates between periods of expansion and contraction. Sometimes those fluctuations last a few years, and sometimes they last a little longer.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWe've all been spoiled for the past decade because the expansionary period -- and the related bull market -- lasted for so long.However, all expansions eventually come to an end, and it looks like we're at the end of the most recent expansion.The good news is that all contractions also eventually come to an end, so we can all be on the lookout for it. Hopefully it's not too far around the bend.So, what are we seeing now in the stock market, and what should everybody be looking for in the future to identify the bullish turn? Sector Rotation in the S&P 500Historically -- remember, we've seen market corrections before -- when the stock market pulls back, defensive sectors, like healthcare, consumer staples and utilities, tend to outperform.Similarly, when the stock market starts to bottom out, more aggressive sectors, like financials, consumer discretionary and technology, tend to outperform.The business cycle chart in Fig. 1 illustrates the relationship between the stages of the cycle -- expansion and contraction in the economy -- and the stock market sectors that tend to outperform during each stage of the cycle.Source: Chart by InvestorPlace Fig. 1 -- Sector Rotation during the Business CycleSo, what's happening now?Since the S&P 500 hit its peak on Feb. 19, every sector in the market has experienced a double-digit percentage drop.However, some sectors have outperformed others during the bear-market reversal. Can you guess which ones? Which Sectors Are Outperforming?Let's look at a comparison chart of the S&P 500 and the 10 S&P 500 sectors as represented by the Select Sector SPDR exchange-traded funds (ETFs). These ETFs are tracked by State Street Global Advisors.Here's the breakdown of the performance of each fund in the sector-comparison chart in Fig. 2: * Health Care Select Sector SPDR Fund (NYSEARCA:XLV): -17.2% * Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP): -17.3% * Technology Select Sector SPDR Fund (NYSEARCA:XLK): -23% * Utilities Select Sector SPDR Fund (NYSEARCA:XLU): -24.1% * SPDR S&P 500 Fund (NYSEARCA:SPY): -26% * Consumer Discretionary Select Sector SPDR Fund (NYSEARCA:XLY): -28.1% * Materials Select Sector SPDR Fund (NYSEARCA:XLB): -28.2% * Real Estate Select Sector SPDR Fund (NYSEARCA:XLRE): -29.4% * Industrial Select Sector SPDR Fund (NYSEARCA:XLI): -32.6% * Financial Select Sector SPDR Fund (NYSEARCA:XLF): -36.2% * Energy Select Sector SPDR Fund (NYSEARCA:XLE): -49%Source: Chart courtesy of TradingView Fig. 2 -- SPDR Sector ETFs Comparison Chart, Mid-March to AprilAs you can see, three of the top four performing sectors during the past six weeks are healthcare, consumer staples and utilities.This is exactly what we would expect to see.So, why is this good news?It's good news because even though we don't know exactly what is going to happen next in the novel coronavirus pandemic, we can be quite confident that Wall Street is going to behave like it has during past pullbacks.That means we can put the odds in our favor by making trades that are informed by history.It also means we can watch the financial, consumer discretionary and technology sectors for signs of a turnaround in the future and be confident in what we're seeing. The Bottom LineWe haven't seen the end of the volatility on Wall Street. Every new revision in the United States' potential Covid-19 death toll will bring swings in the stock market.However, we can navigate these choppy waters. We've got a few historical lighthouses on the shore serving as markers that we can watch to avoid the rocks.John Jagerson & Wade Hansen are just two guys with a passion for helping investors gain confidence -- and make bigger profits with options. In just 15 months, John & Wade achieved an amazing feat: 100 straight winners -- making money on every single trade. If that sounds like a good strategy, go here to find out how they did it. John & Wade do not own the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Finding Predictability Amid the Uncertainty on Wall Street appeared first on InvestorPlace.
When the economy transitions from expansion to contraction and the market transitions from a bull to a bear, investors can't expect all the same stocks and funds to outperform and the same investing strategies to continue to work.Economic fears due to the spread of the COVID-19 coronavirus has led the market to plummet in the past month, with the Dow Jones Industrial Average falling from the 30,000 level to under 19,000 earlier this week.Investors priorities flip from maximizing gains to minimizing risk, and buying volume rotates into brand new pockets of the market. The past few weeks of trading in the market may seem like total chaos, but a closer look reveals certain groups of stocks and funds are outperforming others.Here are eight ETFs to consider that could outperform during a U.S. recession.Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.1\. Health Care SPDR (NYSE: XLV) The health care sector is one of the main sectors of the economy that has historically been a defensive place for investors to put their money during economic downturns.While other businesses are shutting down amid the COVID-19 outbreak, demand for health care services is booming. In the longer term, the fact that former Vice President Joe Biden has surpassed Senator Bernie Sanders as the likely Democratic presidential candidate further eliminates risks associated with a radical overhaul of the U.S. health care and pharmaceutical industries.In the past month, the XLV ETF is down just 21.6% compared to a 29.5% drop by the overall S&P 500.2\. Utilities SPDR (NYSE: XLU) Another potential place for investors to find safety during a recession is Utility stocks. In addition to its relative stability and downside valuation protection, the XLU ETF pays a generous 4.6% dividend yield.Utilities have historically outperformed during economic downturns because Americans must keep the lights on and water flowing no matter how bad it gets. Many utilities have limited competition and operate under strict government regulations, which further serve to create a stable earnings and revenue environment.Utilities may not be a sexy investment, but they can be an excellent source of reliable dividend income while interest rates are at 0%.3\. Consumer Staples Select Sect. SPDR (NYSE: XLP) Another market sector that performs relatively well when the economy tanks is the consumer staples sector.When Americans cut their spending in times of uncertainty, those cuts don't typically include toothpaste, toilet paper and laundry detergent. Consumer staples stocks are relatively recession-resistant, making them safe places to invest during market downturns. Over the past month, the XLP ETF is down just 19.4%, making it the best-performing SPDR sector ETF of all.As an added bonus, the XLP ETF pays a 3.1% dividend, so investors can get paid while they wait for the economy to recover.4\. SPDR S&P Dividend (NYSE: SDY) Not only do dividend stocks and ETFs provide yield for investors when interest rates are nearly 0%, many dividend stocks actually outperform the broad market during economic downturns. The SDY ETF pays a 3.3% yield, which is leaps and bounds better than the interest rates you'll find these days in U.S. Treasuries, high-yield savings accounts or certificates of deposit.The risk in buying high-yield dividend stocks is that the economic hardship will trigger a dividend cut. But dividend ETFs such as the SDY, which holds 120 different stocks, provide the type of diversification that protects against individual dividend cuts.5\. VANGUARD IX FUN/RL EST IX FD ETF (NYSE: VNQ) Real estate is another popular flight-to-safety investment, and real estate investment trusts often pay extremely high yields.The VNQ ETF holds 181 different investments that cover roughly two-thirds of the entire U.S. REIT market. Real estate has historically had relatively low correlation to traditional stocks and bonds, making the VNQ fund an excellent source of portfolio diversification. Investors also don't have to worry about REIT dividend cuts as they are obligated by law to distribute 90% of income to investors.The VNQ ETF currently pays a 5.5% yield and has an expense ratio of just 0.12%.See Also: Ray Dalio: What's Happening In The Markets Has Not Happened In Our Lifetime6\. SPDR Gold Trust (NYSE: GLD) The classic safe-haven investment during times of economic turmoil is gold. There are plenty of reasons investors buy gold during recessions. They argue that there is a limited quantity of physical gold in the world, although gold miners add roughly 3,300 tons of gold to the global supply annually. Gold buyers also see the precious metal as a hedge against inflation that could be triggered by central bank stimulus over time.Whatever the reason, the GLD ETF is down just 2.4% year-to-date, insulating investors from the majority of the broad market sell-off.7\. ISHARES TR/EDGE MSCI INTL VALU (NYSE: IVLU) Another way for investors to protect themselves during a recession is to rotate from growth stocks to value stocks.Value stocks typically have high profit levels relative to their share prices and tend to generate strong cash flows, have stable revenues and carry relatively low debt levels. Self-funding, blue-chip companies can be insulated from the type of uncertainty that is created if credit markets start to tighten. Many of these stocks also pay dividends.The IVLU is one good way for U.S. investors to get exposure to international value stocks and a 2.5% yield.See more from Benzinga * Bitcoin Is Still Failing As A Flight To Safety Investment * 7 Ways To Invest In Gold Amid Coronavirus Fears(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
JPMorgan Chase believes that the stock selloff is overdone. One can buy beaten-down ETFs with strong Zacks ranks, benchmark-beating yields and beta less than one.
Some votes are still being counted, but one thing is clear: Super Tuesday provided banner results for former U.S. Vice President Joe Biden's hopes of securing the Democratic presidential nomination.In some prediction markets, Biden's odds have vaulted as high as 85% compared to a meager 10% for rival Sen. Bernie Sanders. Biden bullishness is being reflected in a predictable venue: the health care sector.In mid-day trading Wednesday, the Health Care Select Sector SPDR (NYSE: XLV), the largest health care exchange traded fund by assets, is higher by 4.4% on volume that has already topped the daily average by a significant margin.XLV follows the Health Care Select Sector Index, which "seeks to provide precise exposure to companies in the pharmaceuticals; health care equipment and supplies; health care providers and services; biotechnology; life sciences tools and services; and health care technology industries," according to State Street.See Also: Biden's Super Tuesday Surge Gives Health Care Stocks A BoostWhy It's Important Health care, the second-largest sector weight in the S&P 500 behind technology, has a long history of being politically sensitive, underscoring the importance to investors of the Super Tuesday results. XLV offers a compelling valuation scenario, too."You'd have to go back to mid-2013 to find the Health Care Select Sector SPDR ETF trading at a significantly cheaper price-to-earnings (P/E) multiple than it does today at 14.6x forward earnings estimates," according to the ETF Research Center.ETFRC sees the recent slide in XLV as possibly a case of too much too fast."This is quite a discount for a sector that, at the margin, may benefit from increased demand stemming from the coronavirus epidemic, suggesting that the recent sell-off may have been overdone," according to the research firm.What's Next Waning sentiment regarding Sanders being the Democratic nominee is helpful to XLV because the Vermont senator is a Medicare-For-All champion, a thorny issue for XLV because the fund allocates over 7% of its weight to Dow component UnitedHealth (NYSE: UNH) and 19.56% of its total weight to managed care providers."Estimates have been stable over the past month, and sell-side analysts' ratings on the companies in the fund have been turning more bullish," said ETFRC.The research firm has an Overweight rating on XLV.See more from Benzinga * Best Sector ETFs For January: Energy, Health Care In Focus(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Shares of Medtronic PLC fell 1.4% in premarket trading Tuesday, after the Dublin-based medical technology company reported a fiscal third-quarter profit that beat expectations but revenue that missed. Net income rose to $1.92 billion, or $1.42 a share, from $1.27 billion, or 94 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to $1.44, above the FactSet consensus of $1.38. Sales grew 2.3% to $7.72 billion, below the FactSet consensus of $7.81 billion, as the company's cardiac and vascular and minimally invasive therapies segments missed expectations, the restorative therapies sales were in line and the diabetes segment sales topped expectations. The company raised its full-year EPS guidance range to $5.63 to $5.65 from $5.57 to $5.63. The stock has gained 5.5% over the past three months through Friday, while the SPDR Health Care Select Sector ETF has tacked on 7.0% and the S&P 500 has advanced 8.3%.
Investors have shunned healthcare stocks and sector-related ETFs during a U.S. presidential election year, but things might turn out differently this time around. The spotlight is already shining over the healthcare sector as Democratic candidates argue among themselves over the finer details of a potential "medicare for All" while President Donald Trump pledged to “never let socialism destroy American healthcare” at his State of the Union address earlier this month, the Financial Times reports. Any major healthcare policy changes will unlikely go through a divided Congress, and more importantly, the sector will continue to find fundamental support over the long-term from increased drug innovation and an aging U.S. population.
It's not a stretch to say nearly everyone knows that 2020 is a presidential election. The Health Care Select Sector SPDR ETF (XLV) , the largest healthcare ETF by assets, is up an impressive 2.43% year-to-date and investors may want to consider giving the fund another glance despite this being an election year.
Shares of Teva Pharmaceutical Industries Ltd. were down 1% in premarket trading on Wednesday after the Israeli drugmaker reported earnings of $110 million, or 10 cents per share, in the fourth quarter of 2019, after a loss of $2.9 billion, or $2.85 per share, in the same quarter in 2018. Adjusted earnings per share were $683 million, or 62 cents per share, matching the FactSet consensus of 62 cents. Revenue rose 1% to $4.46 billion in the fourth quarter of 2019, up from $4.42 billion in the same period a year ago. The FactSet consensus was $4.42 billion for the quarter. Teva attributed the growth to Huntington's disease treatment Austedo and migraine drug Ajovy, saying sales of those products offset lower revenue from multiple sclerosis therapy Copaxone in North America. Sales in North America jumped 6% to $2.37 billion in the fourth quarter, beating the FactSet consensus of $2.14 billion. However, North America sales of Copaxone, Teva's longtime flagship brand, tumbled 26% to $254 million for the quarter, down from $356 million in the same quarter a year ago, as a result of generic competition. Teva issued guidance for 2020, saying it expects revenues of $16.6 billion to $17.0 billion and adjusted EPS of $2.30 to $2.55. Teva's stock is down 32% over the past year, compared to the Health Care Select Sector SPDR Fund , which has gained 16%.
Shares of AbbVie Inc. climbed 2% in premarket trading on Friday although the drugmaker beat earnings expectations for the quarter. The company reported earnings of $2.8 billion, or $1.88 per share, in the fourth quarter of 2019, compared with a loss of $1.8 billion, or $1.23 loss per share, in the same quarter a year ago. Adjusted earnings per share were $2.21 per share, against a FactSet consensus of $2.19. Revenue rose to $8.70 billion for the quarter, up from $8.30 billion in the same period a year ago. The FactSet consensus was $8.69 billion. International sales of Humira, its top-selling rheumatoid arthritis treatment, fell 27% to $948 million, while U.S. sales rose 9.8% to $3.9 billion. The company said that it expects its $63 billion acquisition of Allergan to close this quarter. AbbVie issued strong guidance for 2020 ahead of consensus, saying it expects EPS of $7.66 to $7.76 and adjusted EPS of $9.61 and $9.71. The full-year consensus is $9.45. AbbVie's stock has gained 10% over the past year, compared with the Health Care Select Sector SPDR Fund , which is up 14%.
As the coronavirus pandemic weighs on the health care system, the insurance industry looks for government assistance. Yahoo Finance’s Anjalee Khemlani joins Seana Smith to break down the details.
UnitedHealth Group Chief Scientific Officer Ken Ehlert joins Yahoo Finance’s Anjalee Khemlani and Seana Smith to discuss the new testing kit that will enable patients to test themselves for the virus at home.
The Department of Veterans Affairs is set to become a back-up health system for those infected by COVID-19. Former Secretary of Veterans Affairs Dr. David Shulkin joins Yahoo Finance’s Zack Guzman and Akiko Fujita on The Ticker to discuss.
Shares of Roche are popping after its coronavirus test received FDA approval. Senior Scholar at John Hopkins Center for Health Security Dr. Amesh Adalja joins Seana Smith on The Ticker to discuss.
As the White house faces pressure to ease the economic impact of the coronavirus, Vice President Pence says private insurers will cover treatment and waive copays for diagnostic tests. Raymond James Healthcare Policy Analyst Chris Meekins joins Yahoo Finance's Seana Smith to discuss.
Sam Stovall, CFRA’s Chief Investment Strategist, joins On The Move to discuss how the markets are faring amid the coronavirus outbreak and how leadership is responding to the health scare.
Visiting Professor at George Washington University School of Public Health, Emergency Physician and Former Baltimore City Health Commissioner Dr. Leana Wen joins Yahoo Finance's Zack Guzman & Brian Cheung, along with Morning Brew Business Editor and Podcast Host Kinsey Grant to discuss the coronavirus outbreak and how the health care sector is responding.
Health officials in Texas are taking action to prevent further spread of the coronavirus. Yahoo Finance's Kristin Myers is on the ground in San Antonio, TX and joins Zack Guzman, Sibile Marcellus and Independent Women's Forum board member & Former Congresswoman Nan Hayworth on YFi PM to discuss.
TD Ameritrade Shawn Cruz joins the On The Move panel to discuss his views on how the markets are faring and what investors can do amid the coronavirus to see positive results.
Canaccord Genuity Managing Director Tony Dwyer joins On The Move panel to discuss how the markets have been acting amid the coronavirus and what investors should look for as they invest.
All three major indexes closed in the after Tuesday's trading session, continuing their steep declines after Monday's thousand-point plunge. The Final Round panel discusses the latest market action, and how the coronavirus outbreak could continue to affect markets.